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Klipsch Sues Three E-tailers

Indianapolis — Speaker supplier Klipsch Audio Technologies said it filed suit on Sept. 8 against three Internet sellers for sales violations.

Klipsch said it is seeking recovery of damages as well as an injunction to stop the retail Web sites from “inducing authorized dealers to transship Klipsch products,” and other infringements. The suit names DigitalCraze.com, ReliableAudioVideo.com and SoundCityExpo.com as defendants.

Klipsch president Mike Klipsch said the lawsuit filed in the U.S. District Court for the Southern District of Indiana against these three sites is nearly identical to the successful lawsuits Klipsch filed against six e-tailers in 2004. Klipsch said in those cases, it won a lifetime ban preventing the six sites from selling Klipsch products.

“Our solid resolve in this matter simply will not allow free-riders and their unscrupulous, corrupt business practices to damage the quality, integrity and value of the authorized Klipsch dealer network,” said Klipsch.

In the current suit, DigitalCraze.com, ReliableAudioVideo.com and SoundCityExpo.com were also charged with interfering with the contractual relationships between Klipsch and its authorized dealers, infringing on Klipsch trademarks, illegally using Klipsch’s copyrighted materials, and otherwise competing unfairly with Klipsch.

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